Dialectic Targets DDD, TSL, SAAS and China; Predicts 2014 Year Of The Shorts

2013 was a tough year to be a short seller of equities, as Dialectic Capital Management returns indicate.  With the hedge fund’s 2013 annual performance reported in a 4^th quarter investor letter down -6.24%, and the S&P 500 near record highs driven by nearly a +30% 2013 rise, could a break in equity returns in 2014 lead to the year the fund’s defensive strategy pays off?

In its recent investor letter Dialectic observes that equity markets are in “some form of a tech bubble,” and many professional investors agree as nearly 82% of Bloomberg respondents are claiming the markets are in a bubble.

Dialectic’s investor letter

Looking back on 2013, the investor letter said “We...